Posted Apr 12, 2011 12:38 pm CDT
Baker & McKenzie and a former partner have been sued in what the Am Law Daily describes as a scathing complaint (PDF) over their alleged roles in a corporate stock scheme that played a role in the collapse of Industrial Enterprises of America.
The Pittsburgh-based IEAM is now in bankruptcy court in Delaware, where the complaint against the law firm and Martin Weisberg was filed yesterday, on behalf of company shareholders, by California-based Thomas Alexander & Forrester and Delaware attorney Christopher Loizides. Contending that “IEAM had the right not to have criminals for its attorneys,” the lawsuit claims that the firm hired Weisberg—who allegedly enabled a massive fraud at IEAM—solely because of the big bucks he could bring in from the representation.
Both Weisberg and Baker & McKenzie are accused of inadequately disclosing conflicts of interest related to the representation of IEAM.
The firm declined the Am Law Daily’s request for comment, saying that it had not had an opportunity to study the complaint. Weisberg’s lawyer did not immediately respond to the publication’s request for comment.
Hat tip: Sportsmoney (Forbes).
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